Trade idea: Long 33 Call Options 8 Days Exp.
1 standard deviation move yields a 2 to 1 R (Reward/Risk). A move between 1 and 2 standard deviation yields ~4R trade. Trade is fully risk limited as call options.
One way to trade this is just to take profits at resistance or price targets. Another way I am considering is IF WE MOVE UP in the 35-36 range is to SELL/SHORT call options above the market thus REDUCING RISK while still allowing for more upside. It turns the trade into a bull spread.
The author is passionate about markets. He has developed top ranked futures strategies. His core focus is (1) applying machine learning and developing systematic strategies, and (2) solving the toughest problems of discretionary trading by applying quantitative tools, machine learning, and performance discipline. You can contact the author at firstname.lastname@example.org.
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